You’re not done yet! Here’s what to do next…
If you are Self-filing:
- Review the form for accuracy
- Print and sign form. As your own plan administrator, you are required to verify the information and plan holdings is truthful and accurate.
- Mail form by July 31st to: Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0020
If your CPA is filing the form:
- Review form for accuracy
- Share the form with your CPA for further processing
Carefully check (and double check!) the document you just downloaded. The document is editable, so make any changes as necessary.
NOTE: Our preparation software will prepare a draft of form 5500-EZ for you to file. However, you are your own plan administrator. Therefore you are required to verify the information and plan holdings is truthful and accurate. You are also responsible for filing the form with the IRS by July 31st of this year. This form draft is provided without warranty and engagement with a professional tax adviser is recommended. Use provided form at your own risk.
Frequently Asked Questions
What is form 5500-EZ?
The 5500-EZ is a form filed by one-participant plans a to satisfy certain annual reporting and filing obligations imposed by the IRS.
How do I know my Solo 401k plan value?
Add the total plan assets for all participants in the plan. If you have taken a participant loan, include the balance in your plan assets. You are required to file a 5500-EZ once the plan assets in your Solo 401k reach $250,000 or greater. The $250,000 includes all plan assets. For example, if you have $30,000 in the bank and own a rental house worth $240,000, your plan assets total $270,000 and you need to file a 5500-EZ.
Where do I send the signed form?
The Form 5500-EZ must be filed via mail. It should be filled out and mailed to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0020
When is form 5500-EZ due?
The form needs to postmarked by no later than July 31st. We recommend sending your form via FedEx, UPS, USPS priority mail, or another shipping method that provides you with a tracking number.
Do I have to pay anything to file?
There is no fee to pay to file this form. It is an informational filing only.
What year do I file in?
The 5500-EZ is due on July 31st for the prior year. For example, if your plan assets exceeded $250,000 on December 31st 2018, you need to file the 5500-EZ by July 31st 2019.
Do I need to attach any bank account statements, receipts, or other paperwork with this form?
You do not need to attach any extra documents when filing the 5500-EZ.
Can I get an extension to file my 5500-EZ?
A one-time extension to file Form 5500-EZ (up to 2 ½ months) may be obtained by filing Form 5558 on or before July 31st. For help with this form, please contact your CPA. If you don’t have a CPA able to assist you, reach out to us and we can provide a list of CPAs familiar with the Solo 401k and 5500-EZ filing.
I didn’t file my form 5500-EZ in time. What should I do?
You may be eligible for penalty relief under Revenue Procedure 2015-32. You’ll find instructions for how to file a late 5500-EZ on the IRS website at https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers. We recommend utilizing your CPA to complete this filing. If you don’t have a CPA able to assist you, reach out to us and we can provide a list of CPAs familiar with the Solo 401k and 5500-EZ filing.
How do I submit an amended 5500-EZ?
You must submit the amended return using the paper Form 5500-EZ with the IRS.
Do I need to complete a separate 5500-EZ for my spouse?
No, all participant accounts are under one 401k plan. Tally the assets for you and your spouse’s assets.
If I have an outstanding loan, do I need to include that amount in my account balance?
Yes, your outstanding participant loan balance is still a part of your total plan value.
What if I made contributions this calendar year for last year’s tax year?
If you contributed money this year to be included in last year’s tax year and that contribution pushed your total value over $250,000 then you will need to file form 5500-EZ.
I’m a sole proprietor. Can I use my social security number on form 5500-EZ?
No. If your Solo 401k plan has enough assets to file form 5500-EZ, you must obtain a new tax ID number (EIN – Employer Identification Number) from the IRS for your sole proprietorship. You may not use your social security number. You can apply (free) for an EIN for your sole proprietorship online using the IRS website.
Does a Solo 401k plan usually have any liabilities?
No, the typical Solo 401k plan will have $0 in liabilities during a plan year.
Help! I don’t have a CPA to help me file this form.
No problem! Just reach out to us and we can provide a vetted list of great CPAs in our network who are familiar with the Solo 401k and 5500-EZ filing.